Crypto Execs Speculate On What’s To Blame As Bitcoin Slumped Under...
Crypto analysts shared a few ideas on what may have caused the crypto markets to bleed this weekend, but assured that it’s a regular part of the crypto cycle.
Crypto executives speculate that outflows from crypto exchange-traded funds, long-term whale sales and escalating geopolitical tensions may be to blame for the recent market slump, as Bitcoin dropped to nearly $93,000 on Sunday.
Bitcoin (BTC) briefly fell to a year-to-date low of $93,029 on Sunday. The overall market capitalization has also seen a pullback in the last seven days, from $3.7 trillion on Nov. 11 to $3.2 trillion on Monday, according to CoinGecko.
Speaking to Cointelegraph, Ryan McMillin, chief investment officer of Australian crypto investment manager Merkle Tree Capital, said it’s not one single shock that’s causing the market slump.
McMillin pointed to the onchain data showing long-term holders “finally cashing in after an extraordinary run” as one cause, and “good fundamentals and liquidity tail winds for the price to go much lower.”
“Put that together and you have old coins being distributed into a softer bid in a macro environment that’s a lot less forgiving than it was six months ago,” McMillin added.
Matt Poblocki, the general manager of Binance Australia and New Zealand, said the volatility is a reminder that crypto remains a maturing asset class influenced by global macroeconomic and political events.
Meanwhile, Holger Arians, the CEO of Banxa, a crypto payment and compliance infrastructure provider, said markets are running very hot relative to the state of the world.
“We’re dealing with several unresolved and in some cases escalating geopolitical tensions. At the same time, global tech valuations have kept rising on future expectations. A broader risk-off moment was almost inevitable after a year of optimism,” he said.
Other crypto executives on X also had ideas about the cause. Hunter Horsley, CEO of Bitwise Asset Management, believes the four-year cycle narrative may be to blame for the market pullback, as traders are spooked by the idea of a downturn every few years and end up contributing to it by selling.
Source: CoinTelegraph
